{"id":3710,"date":"2026-07-17T03:00:00","date_gmt":"2026-07-17T10:00:00","guid":{"rendered":"https:\/\/slickcashloan.com\/learn\/?p=3710"},"modified":"2026-07-06T22:52:38","modified_gmt":"2026-07-07T05:52:38","slug":"texas-city-ordinances","status":"publish","type":"post","link":"https:\/\/slickcashloan.com\/learn\/texas-city-ordinances\/","title":{"rendered":"How Texas City Ordinances Affect Payday Lending"},"content":{"rendered":"\n

Local Texas ordinances can affect payday lending terms in some areas. They can dictate the maximum amount a customer can borrow, rules on loan renewal, refinancing, and the payment plan.<\/p>\n\n\n\n

Not every Texas city has the same rules. Therefore, a borrower should check the local laws before they take out a payday loan, especially if the loan is issued through a Credit Access Business<\/a>.<\/p>\n\n\n\n

Why Texas Cities Created Local Payday Lending Rules<\/h2>\n\n\n\n

Texas is unique in that it has no standardized upper limit for payday lending, unlike many other states. Because of this, many cities have implemented local ordinances for payday lending and auto title lending.<\/p>\n\n\n\n

The primary purpose of these city ordinances was to add more boundaries to the lending process and the size of a loan. These ordinances also added more boundaries to the structures and terms of loan repayments and lending renewals.<\/p>\n\n\n\n

Local ordinances only affect businesses that operate in the city. If the borrower is outside of the city’s jurisdiction, they may not have the same protections.<\/p>\n\n\n\n

The 20% Gross Monthly Income Rule<\/h2>\n\n\n\n

Many ordinances in Texas cities follow a rule that the maximum size of a payday loan cannot exceed 20% of a borrower’s gross monthly income. Gross monthly income refers to the income of a borrower that has not been taxed.<\/p>\n\n\n\n

If a borrower has a gross monthly income of $3,000, a local Texas rule may cap the payday loan at $600. Just because a borrower can take a loan for $600 does not mean the loan is affordable. The borrower should make sure they can afford the loan in comparison to their other expenses.<\/p>\n\n\n\n

Installment Payment Rules<\/h2>\n\n\n\n

Certain city laws restrict installment payday loans<\/a> to a maximum of four installments. In addition, laws may require that loans be paid in installments which, at a minimum, reduce the outstanding balance by 25% in each installment.<\/p>\n\n\n\n

Principal is defined as the original balance of the loan, not including any interest or fees. The principal reduction requirement ensures that the loan balance is paid down over the term of the loan.<\/p>\n\n\n\n

This differs from a payment that is only used to cover the fees and leaves the majority of the balance on the loan unpaid. Borrowers should verify that each payment made on the loan reduces the principal and by what amount.<\/p>\n\n\n\n

Renewal and Refinancing Limits<\/h2>\n\n\n\n

Some city laws restrict the number of times that a single-payment payday loan can be renewed or refinanced. The typical restriction would allow only three renewals for a single-payment payday loan.<\/p>\n\n\n\n

This is an important restriction because an unrenewed loan has a new, higher cost, while the original loan cost remains. Each renewal incurs a fee. Before renewing or refinancing a loan, it is important to ask how much has been paid, how much remains and whether the new due date will be convenient.<\/p>\n\n\n\n

Examples of Texas Cities With Local Rules<\/h2>\n\n\n\n

Houston, Fort Worth, Dallas, Austin and San Antonio are some of the Texas cities that have local rules pertaining to Credit Access Businesses. Such rules vary by city.<\/p>\n\n\n\n

There are cities that require Credit Access Businesses to register. Likewise, there are cities that require Credit Access Businesses to maintain local business records, as well as cities that restrict the maximum loan amounts, the maximum number of installments, and the maximum number of renewals.<\/p>\n\n\n\n

Since city laws can change, borrowers should visit their city’s webpage or reach out to the city office that is responsible for Credit Access Business registration or consumer protection.<\/p>\n\n\n\n

How Local Rules Affect Online Payday Loans<\/h2>\n\n\n\n

Online payday loans in Texas<\/a> can be difficult to navigate because the borrower, lender and Credit Access Business may all be in different cities. Local laws can impact the transaction based on where the business is located, where the borrower is located and where the Credit Access Business is located.<\/p>\n\n\n\n

Borrowers should not automatically assume that a city law applies. They should inquire about which state and city laws the loan agreement applies to.<\/p>\n\n\n\n

What Borrowers Should Check<\/h2>\n\n\n\n

A borrower in a Texas city that enforces local rules should look at the total repayment amount, annual percentage rate (APR), Credit Access Business fee, lender fee, due date, renewal terms, and the payment schedule.<\/p>\n\n\n\n

Borrowers should look to see if the loan amount is determined by the borrower’s gross monthly income and if the loan term offers a payoff loan with a decreasing principal balance. If the borrower is unclear on the loan contract, they should ask the Credit Access Business for clarification before they accept the offer.<\/p>\n\n\n\n

A borrower should not accept a loan offer that does not align with their financial goals. To avoid a financial burden, the offer terms should be evaluated and understood.<\/p>\n\n\n\n

Conclusion<\/h2>\n\n\n\n

In Texas, city ordinances may limit the size of payday loans, the terms of the loans, and the number of times a loan may be renewed. In cities where such ordinances have been adopted, payday loans are structured and organized to comply with these local laws.<\/p>\n\n\n\n

Even with similarities, city regulations differ throughout Texas. Borrowers need to be aware of local conditions, peruse the entire agreement and pay attention to how much they will need to repay in total before they agree to a payday loan.<\/p>\n","protected":false},"excerpt":{"rendered":"

Local Texas ordinances can affect payday lending terms in some areas. They can dictate the maximum amount a customer can borrow, rules on loan renewal, refinancing, and the payment plan. Not every Texas city has the same rules. Therefore, a borrower should check the local laws before they take out a payday loan, especially if[…]<\/p>\n","protected":false},"author":1,"featured_media":3712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-3710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/posts\/3710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/comments?post=3710"}],"version-history":[{"count":4,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/posts\/3710\/revisions"}],"predecessor-version":[{"id":3715,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/posts\/3710\/revisions\/3715"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/media\/3712"}],"wp:attachment":[{"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/media?parent=3710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/categories?post=3710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slickcashloan.com\/learn\/wp-json\/wp\/v2\/tags?post=3710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}